22- environmental influences on business activity
TRANSCRIPT
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A business is not only about _ _ _ _ _. It is
also about p _ _ _ _ _, s _ _ _ _ _ _ and the
environment.
Starter
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Environmental Influences on Business
activity
Lesson Outcomes:
Understand how the growing concern for theenvironment is influencing business decisions
Know how cost- benefit analysis can be usedto assess the overall impact of a business
decision
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Ways to make business more
environmentally friendly
The three main ways are:
1. Laws passed by government
2. Financial penalties, including pollutionpermits and additional taxes
3. Consumer action and pressure groups
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Businesses affectsociety
Sometimes in a positiveway
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Businesses affectsociety
Sometimes in a negativeway
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Corporate Social Responsibility- is
when a business takes decisions that
may benefit stakeholders other thanshareholders.
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Cost benefit analysis
Costs benefits analysis is the valuation by a
government agency of all the external and
private costs and benefits resulting from a
business decision.
It takes in to account all the costs of a
particular decision not just the financial ones.
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Keywords to learn
External costs- are costs paid by the rest of
society, as a result of the business decision
External benefits- are the gains to the rest of
society resulting from the business decision
Private costs- the actual costs to the business
as a result of its decision e.g. costs of land
Private benefits- are the financial gains made
by a business as a result of its decision
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Social benefits
Social benefits occur when a business has
a positiveeffect on a community and the
environment
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Social benefits
Social benefits occur when a business has a
positiveeffect on a community and the
environment
For example:
Creation of jobs
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Social benefits
Social benefits occur when a business has a
positiveeffect on a community and the
environment
For example:
Creation of jobs
Regeneration of a
Brownfield site
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Social benefits
Social benefits occur when a business has a
positiveeffect on a community and the
environment
For example:
Creation of jobs
Regeneration of a
Brownfield site
Community projects
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Social costs
Social costs occur when a business has a
negativeeffect on a community and the
environment
For example:
Pollution
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Social costs
Social costs occur when a business has a
negativeeffect on a community and the
environment
For example:
Pollution
Business closure
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Social costs
Social costs occur when a business has a
negativeeffect on a community and the
environment
For example:
Pollution
Business closure
Building on a
Greenfield site
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Social costs
Social costs occur when a business has anegativeeffect on a community and theenvironment
For example: Pollution
Business closure
Building on aGreenfield site
Big businesses forcing
out small local businesses
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Why are businesses becoming
increasingly concerned about greenissuesand behaving in an ethical
manner?
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They are afraid bad publicitywill
stoppeople buying their goods
and services
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Link
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Link
http://news.bbc.co.uk/1/hi/business/4376758.stm -
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Answer the following question
A Japanese car manufacturers decision to locate a large car
assembly plant just outside the City centre
Evaluate the social costs and social benefits associated withthis project (9 marks)
Evaluate the social costs and benefits of the car factory locating outside the City
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Evaluate the social costs and benefits of the car factory locating outside the City
Centre (9 marks)
Introduction Explanation of what is proposed
____________________________________________________________________________________________________________________________________________________________(1 mark)
Social costs
____________________________________________________
_____________________________________________________________________________________________________________________________________________________(3 marks)
Social benefits
____________________________________________________
____________________________________________________________________________________________________________________________________________________(3 marks)
Conclusion your opinion of the overall impact on the local area
_________________________________________________________________________________________________________________________________________________________________________________________________________________(2 marks)
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Extension Activity- Poster drawing- Using
the environment
Draw a poster that shows the social costs and
benefitsthat result from business activity
The RULESfor drawing the poster are that youcan use lots of images but no more than 10
words
Once youve drawn it you need to explain it tothe whole class